What is Account-based Marketing and How Can Businesses Benefit From it?
B2B marketers use different strategies to increase their potential customer outreach. One of the strategies is to appeal to as many companies as possible. Another strategy is to concentrate on a set of accounts to narrow the target audience. Account-based marketing (ABM) belongs to this type of marketing strategy. The ABM employs a personalized approach to each account. Let’s consider how your business can benefit from this marketing strategy.
What Is Account-Based Marketing?
At the beginning of the 2000s, marketers aimed at casting wide networks to pull as many leads as possible. In their perception, the greater traffic they could generate to their websites, the better. However, this philosophy didn’t yield the desired outcomes. With time, the traditional view on online marketing has been replaced by ABM.
The traditional marketing looked as follows: attract prospects to the website, encourage them to fill out forms, nurture leads with automated emails, and identify potential clients. On the contrary, ABM aims at building long-term relationships with your target audience, developing personalized conversations and identifying clients’ needs. Hence, account-based marketing is a strategic approach based on account awareness. ABM is based on the specific needs of target accounts. Therefore, this approach is called “account-based” marketing. Many marketers believe that ABM has higher ROI as compared to other approaches targeting the increase in the number of leads.
The Differences between ABM and Inbound Marketing
It’s not that we want to persuade you that ABM is better than inbound marketing or vice versa. The major goal is to separate these two and explain the benefits of ABM so you can decide which one fits your marketing goals better.
The major differences between ABM approach and inbound marketing are as follows:
- as compared to inbound marketing, ABM is highly targeted;
- ABM focuses on accounts rather than industries (markets);
- ABM aims at evoking interest in both prospects and customers.
The focus of ABM is on those prospects that are likely to buy your products/services. Also, personalized campaigns encourage potential customers to engage with your company. The focus on accounts rather than industries helps better understand your B2B customers’ needs and create optimized content addressing their particular issues.
When ABM targets both prospects and potential customers, it fulfills the main marketing goal of landing and expanding by using optimized campaigns. Therefore, you can attract new clients and leverage new opportunities to grow existing accounts by using cross-sales and upsell.
Benefits of ABM
The major benefits of ABM are:
- alignment between marketing efforts and sales;
- optimized sales funnels;
- high ROI;
- great customer experience.
Alignment between Marketing Efforts and Sales
ABM helps communicate better with potential customers. This leads to the alignment between marketing and sales. When using ABM strategy, both marketing and sales efforts focus on target accounts to reach the common goal. ABM yields outstanding results since the companies using it report one-third growth in revenue.
Optimized Sales Funnels
ABM is a type of zero-waste approach to the use of resources since it helps optimize marketing and sales funnels. This happens because marketing and sales efforts target specific accounts rather than everybody. With the help of ABM, you engage with the prospects having a shaped buying decision. The combination of a narrow-focused approach to reach customers and great customer experience can significantly increase your conversions.
ABM helps reach outstanding results in terms of ROI if you succeeded to develop an effective ABM strategy. It delivers higher ROI as compared to other B2B marketing approaches. However, measuring the results of your ABM campaign is a challenge. Therefore, we recommend running a pilot program before you implement a large-scale ABM campaign.
Clear Results Measuring
Measuring the result of your ABM campaign is easier as compared to that of a traditional marketing campaign because you analyze a limited number of emails or ads. This helps draw conclusions about several target accounts instead of using a vast set of measurements.
The choice of your marketing strategy depends on your current goals and resources at your disposal. You may use the tools of inbound marketing, ABM, or the combination of both. We encourage you to make experiments to work out the best approach that fits your needs.
Originally published 2021.01.11 , updated 2021.01.19